This study examined the relationship between leadership characteristics and school climate. Through the online administration of two instruments, The Leadership Practices Inventory (LPI) and The School-Level Environment Questionnaire (SLEQ), teacher and principal perceptions of leadership characteristics in five categories and school climate in eight categories, were collected and analyzed. The SLEQ included two forms, actual environment and preferred environment. Leadership skills, characteristics, and styles define the leader in a school building. The role of the school leader has become more complex, and expectations for leaders to create environments that support students, provide continuous learning for teachers, foster innovation, and meet achievement goals has become standard practice. School climate encompasses all of these expectations. Although the research on leadership and its characteristics is extensive, this study examined the research in the context of the needs of schools’ today, identified how leadership influences school climate, and predicted the discrete leadership characteristics that support the growth of positive school climate.